Asked by
Chelsea Rosales
on Nov 12, 2024
Verified
Which of the following expressions is termed the profit margin factor as used in determining the return on investment?
A) Sales/Income from Operations
B) Income from Operations/Sales
C) Invested Assets/Sales
D) Sales/Invested Assets
Profit Margin Factor
A measure of a company's earnings (or profits) relative to its revenue, showing the percentage of each dollar of sales that results in profit.
Return On Investment
A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of multiple investments.
Income From Operations
The earnings generated from a company's regular core business operations, excluding deductions of interest and taxes.
- Assess and clarify the profitability margin for departments or enterprises.
- Employ financial metrics and calculations to evaluate company activities.
Verified Answer
BG
Learning Objectives
- Assess and clarify the profitability margin for departments or enterprises.
- Employ financial metrics and calculations to evaluate company activities.